Key Takeaways
- XRP has decreased by 11% in the past week, with the possibility of dropping below $2 soon.
- This decline comes despite the recent launch of the spot XRP ETF.
XRP Faces Continued Underperformance
XRP, the native token of the Ripple ecosystem, is experiencing intense selling pressure at critical support levels, a trend mirrored across the broader cryptocurrency market.
Over the last week, XRP has lost 11% of its value. This decline is occurring against a backdrop of mixed institutional signals and heightened macroeconomic uncertainty. Overall, the cryptocurrency market remains trapped in a medium-term bearish trend, with market sentiment currently leaning towards fear amid growing volatility for Bitcoin and other major cryptocurrencies.
Remarkably, XRP’s price did not respond favorably to the recent debut of the US spot ETF for XRP (XRPC), which recorded a trading volume of $58.6 million on its first day—well above analysts’ expectations of $17 million.
Despite the ETF’s strong start, derivative market signals have suggested stress, causing XRP to lose the key support level of $2.50. This bearish performance led to the liquidation of around $28 million in long positions for XRP over the past 48 hours.
XRP Could Fall Below $2 if Current Support Fails
On the daily chart, the XRP/USD pair retains bullish potential, although recent weeks have been challenging. The token encountered resistance at the 50-day EMA around $2.49 last week and has since dropped 11%, currently trading above $2.27 per coin.
If recovery efforts strengthen, XRP could approach significant resistance at the 50-day EMA near $2.55. The RSI on the daily chart is at 42, close to its neutral level of 50, indicating a possible easing of bearish momentum. For a sustainable recovery, the RSI must breakthrough the neutral threshold. Additionally, the MACD lines remain in the bearish zone, indicating that sellers are still in control.
However, should the downward trend continue, XRP risks dropping below the psychological level of $2, potentially retesting the next daily support at $1.96.
